What is Supplier Selection?
Supplier selection is the process of choosing a supplier or group of suppliers to provide goods or services to an organization. It is an important part of procurement and supply chain management, as the quality and reliability of a supplier can have a significant impact on the success of an organization.
Supplier selection typically involves a number of steps, including:
- Defining the requirements: Identifying the specific goods or services that are needed, and the criteria that will be used to evaluate potential suppliers.
- Identifying potential suppliers: Researching and identifying potential suppliers that may be able to meet the organization's needs.
- Evaluating potential suppliers: Evaluating the capabilities and qualifications of potential suppliers, using criteria such as price, quality, delivery times, and reliability.
- Selecting the supplier: Making a final decision on which supplier or suppliers to use, based on the results of the evaluation.
- Negotiating terms: Negotiating the terms of the agreement with the selected supplier, including the price, delivery times, and any other terms and conditions.
Overall, supplier selection is an important part of procurement and supply chain management, and involves identifying and evaluating potential suppliers, and selecting the best one to meet the organization's needs.